A. 1. The new manager
is said to work 12 hours a day.
2. The free market economy
is said to be more flexible.
3. Three people are
reported to have been injured in the explosion.
4. The strike is
expected to end soon.
5 Complementarity is
said to exist when an increase in the quantity of one
product sold leads to an increase in the demand of another product.
6. Consumers are assumed
to wish to maximize their utility of satisfaction.

7. Firms are assumed to
maximize their short-run profits.
8. When an increase in the scale of production yields a more than
proportionate increase in output, the
enterprise is said to be experiencing economies of scale.
9. The train was supposed
to arrive at 7 o'clock but it was half an hour late.
10. Many people are
reported to be homeless after the floods.
11. The building is
reported to have been damaged by fire.
12. The company is said
to be losing a lot of money.
11. Goods which
are close substitutes for one another are said to be in
competitive demand.
14. A good is said to be
in composite demand when it is demanded for several
different uses.
15. The capitalist system
is said to be based upon the principle of competition.
16. Consumers are
assumed to maximize the satisfaction derived from the
goods and services that they buy.
17. Firms are assumed to
know what quantity of each product they would sell.
18. Consumers are
assumed to be aware of all the goods and services they
could buy.
19. The total value
of international movements of capital
is thought to be at least ten times the value of world
trade in goods and services.

B. 1.
A small firm is likely to be specialising in one product.
2. The larger firm is
likely to have a diversified market structure.
3. An increase in
the output of capital goods is
likely to mean that the current consumption of goods and
services is less than it might have been.
4. 'Ownership' of labour
is likely to be highly unpopular politically.
5. The limit
to output is most likely
to be determined by the quantity of capital inputs.
6. The balance is most
likely to swing towards installing additional capacity
under the following circumstances.
7. The larger firm is
more likely to be able to employ buyers who are
experienced in buying particular products.
8. Horizontal growth is
unlikely to give rise to those risk-bearing economies
which depend upon a diversified range of activities.
9. Diversified growth is
more likely to give rise to risk bearing economies.
10. In fact demand is
likely to be highly elastic when the market is depressed.
11. Even if market demand is inelastic, the demand for the
product of a firm which increases its price is likely to be
highly elastic.
12. The reasons for this is that rival
suppliers are likely to maintain their prices in the hope
of attracting customers from the higher-price firm.
13. Price reductions are
most likely to occur if they can be concealed from
competitors.
14. Price is likely to
be held stable during the pricing season over quite a
wide range of output, both greater and less than expected.
15. If the original profit margin
was not considered to be adequate and demand is less than
expected, the response is
likely to be as before.
16. But when demand turns out to be greater than expected suppliers are likely to take the
opportunity to improve their profit margins.
17. As we noted above,
firms are likely to be most confident about rivals'
responses, i.e. to be able to exercise control over price, in highly
concentrated industries.
18. Initially price is
unlikely to fall in response to a fall in demand.
19. The effect
on an increase in output is
likely to be most pronounced when the economy as a whole
is operating near full capacity.
20. Each of these
different machines is likely to have a different capacity.

С .1. The aim of
convertibility proved
difficult to achieve.
2. The management seem
to be moving in the right direction.
3. The two sides appear
to have solved the problem.
4. Since that time the
market share of these larger companies does not seem to have increased.
5. These studies seem to
indicate that the size structure of plants in British
industry is such that they are able to take advantage of such scale
economies as are available.
6. Many mergers appear
to have been motivated by a desire to increase market
power rather than by a desire to increase efficiency.

• E.g. We heard that a car stopped outside the door. A car was heard to stop outside the door.

It is believed that the poem was written
by Byron. The poem is believed to have been written by Byron.

1. People consider the climate there to be very healthful. 2. It was announced that the Chinese dancers were arriving next week. 3. It is expected that the performance will be a success. 4. It is said that the book is popular with both old and young. 5. It is believed that the poem was written by an unknown soldier. 6. It is supposed that the playwright is working at a new comedy. 7. It is reported that the flood
has caused much damage to the crops. 8. It was supposed that the crops would be rich that year. 9. It has been found that this mineral water is very good for the liver. 10. Scientists consider that electricity exists throughout space. 11. It is said that the weather in Europe was exceedingly hot last summer. 12. It was reported that five ships were missing after the battle.